P 14 - 2
On January 1, 2018, Baddour Inc., issued 10% bonds with a faceamount of $160 million. The bonds were priced at $140 million toyield 12%. Interest is paid semiannually on June 30 and December31. Baddour's fiscal year ends September 30.
Question #1.) What amount(s) related to the bonds would Baddourreport in its balance sheet at September 30, 2018?
On 9/30/18 Interest expense - Interest payable is $4,212,000 -$4,000,000 = $212,000,000. I'm curious then, when subtracting theinterest payable from the interest expense what it would be on6/30/18? This is the 9th edition of Intermediate Accounting byauthors Spiceland, Nelson, and Thomas. Published by McgrawHill.
